Avid Bioservices Completes Transition to Private Ownership Following Billion-Dollar Acquisition

The public trading chapter for Avid Bioservices has officially closed. The biotechnology firm’s shares ceased trading on the Nasdaq exchange as of today, marking its transition to a privately held entity. This move concludes a significant acquisition process valued in the billions.

A Lucrative Exit for Shareholders

The path to privatization was set in motion in November 2024 when investment firms GHO Capital Partners and Ampersand Capital Partners agreed to acquire the company for a substantial $1.1 billion. Shareholders received a favorable cash exit of $12.50 per share. This price represented a notable 13.8% premium over the share price from the day before the deal’s announcement and was 21.9% higher than the stock’s 20-day average price at that time.

Following a unanimous approval from Avid’s board of directors and subsequent shareholder consent secured in late January 2025, the merger was formally completed on February 5 of this year. The inevitable next step occurred the following day when the stock was officially delisted from the public market.

New Strategy Under Private Ownership

The acquisition by GHO Capital and Ampersand Capital, both specialists in healthcare sector investments, is strategically motivated. The new ownership believes that operating as a private company will afford Avid Bioservices greater flexibility to pursue its long-term growth objectives without the short-term pressures of the public equity markets.

Should investors sell immediately? Or is it worth buying Avid Bioservices?

The company will continue its operations under the established Avid Bioservices brand. The strategic plan involves leveraging its existing foundation—which includes state-of-the-art manufacturing facilities and deep expertise in bioprocess optimization—to expand its service offerings, invest in specialized talent, and grow its international footprint.

Implications for Former Investors

For previous market participants, the situation is clear-cut. The equity story for Avid Bioservices as a publicly traded company has concluded. Analyst ratings, price targets, and technical trading signals are now all rendered obsolete.

The firm will now channel its entire focus on its core business as a Contract Development and Manufacturing Organization (CDMO). Backed by the financial resources of its new private equity owners, the company is positioned to concentrate on its long-term strategic development. Whether this privatization will deliver the anticipated acceleration in growth is a question the broader biopharmaceutical industry will be watching closely.